You are here

Indian, Pakistan markets rattled as Kashmir tensions rise

The broader NSE index fell 0.26 per cent to 10,806.65, while the benchmark BSE index closed 0.19 per cent lower at 35,905.43.

[NEW DELHI] Indian and Pakistan shares fell on Wednesday as tensions between the two countries intensified with Islamabad saying it had shot down two Indian jets a day after Delhi said its warplanes had struck inside Pakistan.

Both countries have ordered air strikes over the last two days, the first time in history that two nuclear-armed powers have done so, while ground forces have exchanged fire in more than a dozen locations.

Tensions have been elevated since a suicide car bombing by Pakistan-based militants in India-controlled Kashmir killed at least 40 Indian paramilitary police on Feb 14.

"Markets will remain volatile till these geopolitical tensions subside," said Neeraj Dewan, director at Quantum Securities.

The broader NSE index fell 0.26 per cent to 10,806.65, while the benchmark BSE index closed 0.19 per cent lower at 35,905.43.

Your feedback is important to us

Tell us what you think. Email us at

"There is a concern that things should not escalate into a bigger problem," said Siddhartha Khemka, head of retail research at Motilal Oswal Securities.

"Now if something more has happened, it needs to be seen what kind of impact it will have in the geopolitical scenario. The market will take cognisance and remain cautious."

The NSE index rose as much as 0.96 per cent earlier in the day and then fell as much as 0.78 per cent, while the BSE index had gained up to 1.1 per cent before declining as much as 0.7 per cent.

In Pakistan, the benchmark KSE 100 Index fell 0.33 per cent to 38,692.69 and the narrower KMI 30 index pulled back by 0.46 per cent to 64,967.18.

"There are risks in the short term, till the entire cloud of uncertainty in the Indo-Pak tension passes... these tensions have been an incremental uncertainty for us," said Hitesh Agarwal, executive vice president and head – retail research, Religare Broking.

Foreign investors will be more concerned with the developments, market sources said, which could prompt some trimming of their bond and currency positions.

"There is clearly an escalation of tension between India and Pakistan. It is best to sell and be light as uncertainties are way too many," said a senior bond trader.

The Indian 10-year benchmark bond yield rose on the day to end the session at 7.6722 per cent, while the partially convertible rupee closed at 71.24 per dollar compared with its previous close of 71.08, after dropping to a low of 71.49.


BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to